This report describes the Palenque Project, a highly interactive, multimedia, optical disc research prototype which was developed for home use and tested by observing 25 children in the 9 to 14 year age range and their families and 8 12-year-olds in pairs. It is noted that the project was intended to create a rich, multimedia database environment for children and their families that would pique their curiosity and foster self-guided exploration, information seeking, and decision making as they explore a Mayan ruin in the Yucatan called Palenque. Following an overview of the project and a description of the design and development team, the report provides descriptions of: (1) the components of the prototype design; (2) the target audience and context for use; and (3) the two phases of design, development, and research which produced the preliminary and final prototypes. It is noted that the research and development project involved concurrent and iterative processes of design, research, production, and programming over the course of a 2-year time frame. It is further noted that since the final goal was to produce research prototypes rather than products, collective research efforts in the development of design conventions that reflected chosen pedagogical biases in content and theme development, interface design, production techniques, and technical implementation, were the essence of the project rather than by-products or activities conducted after product completion. (8 references) (GL)